Final draft of pension system reform will be ready on Monday

The final draft of the critical pension system reform will be submitted to the institutions on Monday and is later expected to be tabled in Parliament in late January.

According to the proposal drafted by Labor Minister Giorgos Katrougalos and presented to PM Alexis Tsipras on Wednesday, there will be reductions in main pensions or supplementary pensions under 170 euros.

The proposal also increases employer insurance contributions by 1% and employee contributions by 0.5%. It is also believed that taxes on banking transactions may be introduced to secure 700 million euros to avoid any cuts in main pensions.

The institutions expect to receive the Greek proposal by the 5th of January, after which point negotiations are set to begin via email and teleconferences. The aim is to reach an agreement on the pension reform when the institutions return to Athens later in January.